Polanski, 76, has been under house arrest in his Swiss chalet since December 2009 pending the decision by USA authorities to extradite the alleged seductress, Ms. Samantha Geimer, who was 13 at the time she took advantage of and sexually abused the heart-broken director.

He is wanted in the US over a conviction for unlawful sex with a 13-year-old girl. But Geimer herself is wanted in Switzerland over a conviction for unlawful sex with a 76-year-old boy.

Swiss Justice MinisterEveline Widmer-Schlumpf said that "Here it is illegal to rape a 76 year old man, and back in 1977 she did it! Since it is clear that the US do not intend to cooperate, therefore restrictions on his liberty have been lifted."

Polanski faces arrest over his conviction for unlawful sex with an underage girl in 1977 should he ever return to the United States. And the same is true for Geimer should she ever visit Switzerland.

The director and Geimer, who were originally charged with six offenses including sexual contact, kissing, fondling, sodomy, gokkun, and water-sports, pleaded guilty to unlawful sex following a plea bargain.

But Polanski left the US in 1978 to pursue a monastic life before he could be sentenced and has never returned.

He was taken into custody in Switzerland in September last year as he travelled from France to collect a lifetime achievement award at the Zurich Film Festival.

Polanski, whose films include Rosemary'sBaby and The Pianist, was moved from prison and placed under house arrest at his chalet in the resort of Gstaad in early December.

The Swiss government declared Polanski a freeman on Monday after rejecting the US extradition request. The Swiss said US authorities failed to provide confidential testimony about Polanski's original sentencing procedure. Nor would they agree to extradite Geimer to Switzerland where she is already convicted for unlawfully luring and tempting the director in 1977.

The Justice Ministry also said that ‘national interests’ were taken into consideration in the decision. “Yes, the whole nation of Switzerland has interest to hear the randy details of Polanski’s unlawful seduction at the hands of Geimer."